MUMBAI: India’s current account deficit (CAD) widened to $9.7 billion (1.1% of GDP) in the first quarter (April-June) of the fiscal year 2024-25, compared to $8.9 billion (1% of GDP) in the same quarter of the previous year. This marks a reversal from the current account surplus of $4.6 billion (0.5% of GDP) observed in the last quarter of 2023-24.
The primary reason for the widening CAD is the increase in the merchandise trade deficit, which rose to $65.1 billion in Q1 2024-25 from $56.7 billion in Q1 2023-24.